magazine archive

magazine archive


Look at preference shares if you seek stable income

Thursday 29 Jul 2021

Most stocks owned by retail investors are classified as ordinary shares, giving you part ownership of a company, the right to vote and receive any dividends declared. However, there is another category of share to explore. Preference shares might appeal to investors who are looking for stable...

Discover how much you can stick in a pension and still get government cash

Thursday 15 Jul 2021

The government operates generous incentives to encourage people to use a pension to save for their retirement, but it is worth bearing in mind these incentives are subject to a few controls and limits. WHAT IS THE ANNUAL ALLOWANCE FOR PENSIONS? The pensions annual allowance is the amount of money...

Expert Investor: Using relative valuation models

Thursday 15 Jul 2021

The reason that professional investors care about whether a company is sensibly valued or not is because they want to avoid shares that underperform the market. If most of the good news is already factored into a share, its price can fall precipitously depending on the extent of the over-valuation...

What to do if one of your investments warns on profit

Thursday 24 Jun 2021

A ‘profit warning’ is where a company’s actual profit is materially lower than forecasts set by sell-side analysts and can cause an investor acute portfolio pain; reports of an earnings ‘miss’, a material deterioration in trading or an unforeseen shock are typically punished by brutal share price...

Expert Investor: Find out what earnings momentum can mean for your shares

Thursday 24 Jun 2021

Recently there has been a lot of attention on the ‘growth’ versus ‘value’ debate and the thinking behind each investment style. The successful development of Covid vaccines in November 2020 sparked an apparent rotation out of more expensive stocks which are growing their earnings rapidly and...

Investors are being asked for money. What’s a placing, rights issue and open offer?

Thursday 17 Jun 2021

When a company is looking to raise cash to fund an acquisition, build a new project or pay down debt for example, there are several avenues they can take. Sometimes they will issue bonds, which is a type of loan between a company and an investor. This can be appealing because a company can get...

How sectors can help with fund and trust selection

Thursday 10 Jun 2021

For novice investors, selecting the right fund or investment trust from the thousands available to suit your target returns and risk tolerance is not easy. To help you decide industry trade bodies the Investment Association (IA) and the Association of Investment Companies ( AIC ) provide a menu to...

How to buy foreign shares and the key details you need

Thursday 03 Jun 2021

Many investors only look at the UK stock market for opportunities, but in doing so they would be missing out from a much bigger pool of interesting companies listed on overseas markets. Some of the world’s leading companies trade on stock markets outside of the UK, including retail giant Amazon,...

Expert Investor: Why you should look at free cash flow when assessing stocks

Thursday 27 May 2021

It’s often said that profits are an opinion, only cash is fact. Plenty of businesses that have appeared healthy on standard accounting measures have ended up failing due to a lack of cash flow, as documented by Terry Smith three decades ago in his book Accounting For Growth and more recently by Tim...

What are dividends and why do they matter?

Thursday 13 May 2021

When you buy a share in a company you are literally buying a share in its future earnings. As an ordinary shareholder, you are entitled to vote at the company’s annual general meeting and any extraordinary meetings that are called, to buy more shares when the company has a pre-emptive rights issue...